What Factors Determine Auto Insurance Premiums in Peccole Ranch, NV? Age of Car & More

When it comes to your auto insurance, you may wonder what difference the vehicle you drive will make on your premiums. Why do some vehicles increase your auto insurance while others are far cheaper. Some people don’t understand the number of considerations there are when it comes to insuring a vehicle. Today, and to better understand how auto insurance premiums are determined, InsureWise would like to break down and better explain what affects auto insurance rates and or your premiums.

Why is Insurance Higher on Certain Cars?

The main determining factor when it comes to auto insurance rates are the vehicle’s make (manufacturer) and model of the vehicle. It is fairly simple to understand that luxury vehicles cost more to repair. Large engines also cost more to repair. Basically the bigger your vehicle is and if you have a luxury vehicle, they tend to cost more to repair or replace. However, there are a number of other elements that come into play when calculating your auto insurance premiums such as:
Vehicle’s Age: The older the vehicle is, the more the vehicle drops in value. A newer vehicle will have more value. If a vehicle was damage or totaled in an accident, the older vehicle will cost less money to replace or repair. The older the vehicle you drive is, the cheaper the rates will be. A newer vehicle will have a higher auto insurance rate.
Vehicle’s Size: The vehicle’s size will also determine your auto insurance rates. As previously mentioned, the bigger your vehicle is, you can expect a higher premium. However, smaller vehicles are also more prone to theft and accidents. Therefore, a smaller and faster model vehicle could have a much higher premium than a larger vehicle. The insurance provider can vary on how they determine the auto insurance rate based on the size of the vehicle.
Vehicle’s Engine: The heart of every vehicle is the engine. When parts need to be replaced, the engine size, model, and manufacturer will greatly vary in cost. Not only will the vehicle’s engine vary in cost of repairs and replacements, but the horsepower is also another major factor. The more horsepower the engine has, the higher the risk of driving fast. The more horse power your vehicles has, you should expect a higher premium.
Vehicle’s Safety Features: Modern or newer vehicles are being designed with advanced safety features than are older vehicles. There are sensor systems to aid in lane assists, collision prevention, and more. These safety features are designed to make the vehicle safer not just for the driver and passengers but other drivers as well. Vehicle’s with these advanced safety systems often will help lower your auto insurance premiums.
Vehicle Theft Likelihood: Lastly, the likelihood of your vehicle being stolen can increase your auto insurance premium. The higher the risk of theft, the higher your auto insurance rates will be. Often auto insurance providers use the National Insurance Crime Bureau’s “Hot Wheel” report to see which vehicles are most often stolen. If your vehicle happens to be in the higher ranking for theft, expect to have a higher insurance premium.

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Hopefully this helps you better understand how your vehicle can determine your auto insurance premiums. For help in finding quality auto insurance, call InsureWise today or click here to submit this quick and easy quote form.

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